2017 SUSTAINABILITY REPORT SUSTAINABILITY REPORT 2017 Contents 2 Contents
Total Page：16
File Type：pdf, Size：1020Kb
2017 SUSTAINABILITY REPORT SUSTAINABILITY REPORT 2017 Contents 2 Contents Letter from the Chairman of NOVATEK’s ETHICS 39 PROCUREMENT PRACTICES 74 Management Board 3 Anti-corruption policy 40 Procurement approach 75 Prevention of conflicts of interest 41 Supply chain management 76 REPORT AND REPORTING PROCESS 5 Import substitution policy 76 Human rights 41 Report preparation 6 Identification of material topics 7 COMPANY’S RESULTS 42 OCCUPATIONAL HEALTH AND SAFETY 77 Ensuring strong economic performance 43 Our approach to health and safety 78 COMPANY PROFILE 9 Business model 45 Operational control 79 The Company’s structure as at 31 December 2017 11 Production 46 Accidents and incidents 79 Share capital structure and market capitalization 12 Hydrocarbon production 49 Workplace injury rate 80 Membership in trade associations 13 Gas condensate processing 50 OHS training 80 Awards and achievements 13 Marketing and sales 52 Fire safety, civil defence and emergencies 80 Dividends 55 OUR STRATEGY 14 ENVIRONMENTAL PERFORMANCE NOVATEK’s strategy for 2018–2030 18 AND PROTECTION 82 Sustainable development 19 EXTERNAL SOCIAL POLICY 56 Environmental vision 83 Cooperation with Russian regions 57 Environmental monitoring 84 Support of indigenous minorities of the North 58 Environmental protection – government control 85 STAKEHOLDER ENGAGEMENT 20 Educational programs 60 Emissions and waste 85 Stakeholder engagement principles 21 Preserving cultural heritage 61 Water use and disposal 87 Stakeholder engagement matrix 22 Promotion of sports 62 Energy consumption and efficiency 89 Help to children in dire need 62 Biodiversity preservation 90 Disturbed area reclamation 92 CORPORATE GOVERNANCE 29 Volunteering 63 Environmental protection training 92 Corporate governance system 30 Aid to veterans 63 Environmental costs 93 Remuneration of members of the Board of Directors and the Management Board 35 Internal control and audit 36 EMPLOYMENT PRACTICES 64 Risk management 37 Employee profile 65 Appendix 1. Personnel structure 94 Corporate technical competency assessment system 68 Appendix 2. Compliance with GRI standards 98 Personnel training and development 68 Glossary 111 Trade union relations 70 Social policy 70 SUSTAINABILITY REPORT 2017 LETTER FROM THE CHAIRMAN OF NOVATEK’S MANAGEMENT BOARD 3 Dear stakeholders, responsibility for preserving our country’s It gives us great pleasure to present NOVATEK’s Eleventh Sustain- heritage. We provide financial support to ability Report 2017 prepared in accordance with the new provisions the “Yamal for Descendants” association of the international GRI Standards. and targeted support to indigenous peo- ples. Our acquisitions of new license areas Our Company has maintained the high- kets and how we believe NOVATEK can in the Gydan Peninsula will also stimulate est regard to principles of non-financial play a key role in delivering clean-burn- further development of this remote area reporting: transparency, honesty and ing, affordable and secure energy to the through NOVATEK’s capital investments. consistency in information disclosure, en- global markets. Our new strategy posi- In 2017, we signed a Cooperation abling us to provide unquestioned confi- tions NOVATEK as a global leader in the Agreement with the Kamchatka Territorial dence to our investors, shareholders and LNG market, and we are confident that Government to build a sea transshipment other stakeholders concerning our commit- we will achieve this ambitious goal due terminal for reloading liquefied natural gas ment to sustainable development. to our unique resource potential, profes- at Kamchatka. The Cooperation Agree- The past year was a milestone in many sional competences, balanced invest- ment will facilitate the development of respects for NOVATEK and, equally import- ment and financial policy and, of course, transport infrastructure, trading, economic, ant, for our sustainable development initia- the responsible approach to our business research and technology ties at the Kam- tives. On 12 December 2017, we held our conduct. Our future vision correlates with chatka Territory, will create additional jobs Corporate Strategy Day in Moscow, which the global trend of transitioning the world’s in the region, as well as create conditions comprehensively outlined our long-term economies towards low-carbon, greener for Kamchatka’s gasification, using the strategy covering the period up to 2030, emissions. boil-off gas from the reloading terminal to highlighting our views of the global mar- Our transformation into a global gas generate power and support utility indus- company and a major global LNG player tries on the Kamchatka Peninsula. began with the successful launch of our In the field of charitable activities and first liquefied natural gas production in corporate sponsorship, we fund projects 102-14 2017 at our Yamal LNG project. and activities aimed at supporting edu- NOVATEK cooperates with regional cation and culture, promoting Russian art Contributions to Society governments in the Company’s regions of and its integration into the international operations in infrastructure development, cultural space, and developing amateur • Over 12,000 employees improvement of education and quality of and professional sports. • RR 2.8 billion spent on region’s development and charity life. The Company’s core area of opera- In 2017, the Company approved the • RR 1.4 billion spent on social programs for employees tions is the Yamal-Nenets Autonomous NOVATEK Charity Program, with the sup- • Dividends paid RR 45 billion Region in Russia. Traditionally, we support port of children being one of our key • Group procured RR 706 billion worth of goods and services from small indigenous minorities of the North, priorities. suppliers including activities within the framework In the current reporting year we allo- • RR 2.1 billion spent on environmental protection of the state sponsored programs. The cated approximately RR 2.8 billion into culture and life style of these indigenous the region`s development, social proj- peoples are unique and we recognize our ects, charity and sponsorship programs, SUSTAINABILITY REPORT 2017 LETTER FROM THE CHAIRMAN OF NOVATEK’S MANAGEMENT BOARD 4 102-14 increasing our commitments to sustain- Ensuring operational and labor safety in the nomination category “Science for able development by 47% compared is our also a key priority. We are focused Ecology”. Primary themes with 2016. on preventing hazardous occurrences and We closely monitor biodiversity with- NOVATEK employs more than 12 thou- minimizing the risks of occupational inju- in the territory of the South-Tambeyskoye sand people who are considered our ries, accidents and fires. To ensure and field, as well as all our other projects. The • Energy Affordability most valuable asset. It is the dedication enhance occupational safety NOVATEK implementation of our large-scale Yamal • Energy Security and commitment of our employees that takes all possible measures, including LNG project imposes special obligations • Energy Sustainability allows us to achieve high operating and state-of-the-art safety systems, rigid con- on the Company with regard to environ- financial results and our transformation as trol, regular checks and employee training. mental protection. a leader in the global gas market. We fully We have always strived to meet the To preserve biodiversity we took an support our employees in all endeavors highest norms and standards in the area active role in the construction of a fish to achieve our sustainable developments of environmental responsibility and stew- plant on Sob river to breed valuable and matters as human rights, one of the most goals and objectives, as well as a “pre- ardship. Improving environmental protec- endangered fish species. This biodiversity talked-about topics in sustainable devel- ferred” place of employment. In 2017, we tion is an essential part of our sustainable project is unique for the Arctic region and opment, which requires special attention spent over RR 1.4 billion on social pro- development initiatives. Investments in it is all the more important for the Com- and consideration. We strive to further grams for the employees, and we support environmental initiatives ensure the quality pany to take an active part in its imple- improve our sustainable development our employees` efforts to improve their of life and the health of future generations. mentation. Even under severe climatic practices in line with industry best prac- professional skills and enhance career As part of the “Year of Ecology” in Rus- conditions, we can and must take care of tices and evolving global initiatives. We opportunities, as well as their commitment sia, we developed and implemented an nature and facilitate reproduction of bio- take pride in our accomplishments but are to the achievement of NOVATEK’s long- Action Plan aimed at ensuring the highest logical species through new environmen- keenly aware that we must improve each term strategic goals. We recently launched levels of environmental awareness: anoth- tal technologies. and every year. As a global leader in pro- the prospective idea management proj- er stage of our Biodiversity Program was Our Sustainability Report 2016 was one viding clean burning energy to industries ect called “Novator”, which represents an implemented, concrete action steps were of the winners of the “Change Manage- and residential consumers, our Sustain- automated corporate system to accumu- implemented to ensure artificial repro- ment.